Outrageous Billing: NERC Slams Abuja, Eko, Six Other DisCos With N628m Fine, Orders Refunds
In a decisive move to rein in arbitrary electricity billing, the Nigerian Electricity Regulatory Commission (NERC) has slammed a cumulative fine of N628.03 million on eight Distribution Companies (DisCos) for overbilling unmetered customers.
The affected utilities—Abuja, Eko, Enugu, Ikeja, Jos, Kaduna, Kano, and Yola DisCos—were found to have breached approved billing regulations between July and September 2024. The sanction, imposed under Section 34(1)(d) of the Electricity Act 2023, comes with a directive to credit affected customers by May 15, 2025.
According to a statement issued by the Commission, the action followed a quarterly review of DisCos’ billing practices, which exposed widespread violations of the Commission’s energy caps.
These caps are intended to ensure estimated billing for unmetered customers reflects the consumption patterns of similarly situated metered users on the same feeder.
“The public may recall that in 2020, the Commission issued the Order on Capping of Estimated Bills (Order No: NERC/197/2020) and subsequently issued monthly energy caps aimed at aligning estimated bills for unmetered customers with the measured consumption of metered customers on the same supply feeder,” the statement read.
NERC said its Q3 2024 review showed that the eight DisCos failed to comply with the established energy caps, prompting the Commission to levy a financial penalty equal to 5 per cent of the total overbilling amount recorded during the period—amounting to N628,031,583.94.
In addition to the fines, the DisCos have been ordered to make commensurate credit adjustments to all overbilled customers no later than May 15, 2025, the end of the April 2025 billing cycle.
Reiterating its zero-tolerance stance on regulatory infractions, the Commission declared, “NERC remains resolute in its commitment to consumer protection and ensuring regulatory compliance across the Nigerian Electricity Supply Industry.”
